Student Housing Services reports that apartment rents in Tel Aviv have reached the end of their run-up and stabilized or even fell slightly in May 2007, compared with April. The apartment listings site notes, however, that “demand is still much higher than supply.”
The average rent for a three-room apartment in south Tel Aviv fell by 1.5% in May to $680 per month, it fell 2% in central Tel Aviv to $900, and was unchanged in north Tel Aviv at $988. The site adds that the average rent for a three-room apartment in Jerusalem rose 12% in May to $680 per month.
On the other hand, apartment listing site Winwin says that rents in all parts of Tel Aviv rose in May, after falling in April. The average rent for a three-room apartment rose to $650 per month in south Tel Aviv, $1,110 in central Tel Aviv and $1,160 in the northern neighborhoods. Winwin predicts that rents will rise further during summer.
More listings switch from dollars to shekels
Student Housing Services also reports that the proportion of apartment listings priced in shekels, instead of dollars, has increased. In May, 20% of listings for Tel Aviv apartments were listed in shekels, compared with 17% of apartments in Jerusalem, and 15% in Haifa and the Kryaot.
Last week, Levy Yitzhak announced that his listings of rentals and second hand apartments will be priced in shekels, rather than dollars. The new policy will begin in the June listings, which will be published on June 15. He said, “People’s salaries are in shekels, and it makes no sense to rent or buy an apartment denominated in a foreign currency. More than ever before, the Israeli market is ready to talk about real estate transactions in shekels.”
Published by Globes [online], Israel business news - www.globes.co.il - on June 3, 2007
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